Hyundai Motor IPO opens on October 15; check all details of India's biggest issue

Hyundai Motor India is set to launch India's largest ever initial public offering (IPO) on Tuesday, October 15. The passenger vehicles player is offering its shares in the range of Rs 1,865-1,960 apiece, where investors can apply for a minimum of seven equity shares and its multiples thereafter. The bid for the issue closes on Thursday, October 17.

The IPO of Hyundai Motors India will be entirely an offer for sale by South Korean auto major Hyundai Motor Company, who will offload up to 14,21,94,700 equity shares. At the upper end of the price band, the company is looking to raise Rs 27,855 crore via IPO route, which makes it the biggest IPO of the Indian stock market.

Incorporated in May 1996, Chennai-based Hyundai Motor India is a part of the Hyundai Motor Group, which is the third largest auto original equipment manufacturer (OEM) in the world based on passenger vehicle sales. The company also manufactures parts such as transmissions and engines.

The Indian entity will not receive any proceeds from the IPO and the entire net proceeds from the issue shall go to the South Korean parent Hyundai Motor Company, Anchor book for the issue opens on Monday, October 14. Hyundai Motor India will command a market capitalization of Rs 1.6 lakh crore.

Hyundai Motor India provides mobility solutions, operating a network of 1,366 sales points and 1,550 service points across India. The company has sold nearly 12 million passenger vehicles in India and through exports to Africa, the Middle East, Bangladesh, Nepal, Bhutan and Sri Lanka. It has partnered with 363 dealer companies for distribution and sales in India.

Hyundai Motor India manufactures and sells four-wheeler passenger vehicles, including models such as sedans, hatchbacks, SUVs, and electric vehicles (EVs). The company's models include the Grand i10 NIOS, i20, i20 N Line, AURA, Elantra, Venue, Venue N Line, Verna, Creta, Creta N Line, Alcazar, Tucson, and the all-electric SUV Ioniq 5.

For the quarter ended on June 30, 2024, Hyundai Motor India reported a net profit of Rs 1,489.65 crore with a revenue of Rs 17,567.98 crore. The auto maker reported a net profit of Rs 6,060.04 crore with a revenue of Rs 71,302.33 crore for the financial year ended on March 31, 2024.

The issue includes a reservation of 7,78,400 equity shares for the eligible employees of the company, who will get a discount of Rs 186 per share. Hyundai Motor India has reserved 50 per cent of the net offer for qualified institutional bidders (QIBs), while non-institutional investors (NIIs) have 15 per cent of the allocation. Retail investors will get the remaining 35 per cent.

Kotak Mahindra Capital, JP Morgan India, Citigroup Global Markets India, HSBC Securities & Capital Markets and Morgan Stanley India Company are the book running lead managers of the Hyundai Motor IPO, while Kfin Technologies is the registrar for the issue. Shares of the company shall be listed on both BSE & NSE with October 22, Tuesday as the tentative date of listing.